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Spotlight on sustainability: WEG
Portfolio Manager, Sujaya Desai, discusses energy efficient electrical motor manufacturer, WEG.
As part of our Spotlight on sustainability series, Sujaya Desai introduces WEG, an electric motors manufacturer based in Brazil.
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Company information as at 30 September 2023
More information available on our Portfolio Explorer tool.
- Company Information
- Sustainable Development Goals
- Climate Solutions
- Human Development Pillars
Company Profile
Energy efficient electric motors, transformers, renewable energy solutions and industrial coatings.
Stewardship
Family - Founded in 1961 by Werner Ricardo Voigt, Eggon Joao da Silva and Geraldo Werninghaus - the company remains majority owned by the founding families.
Areas for engagement
- Circular economy and recyclability of products.
What we like
- WEG has a strong brand, global scale and manufacturing footprint and its vertically integrated business model allows for easier customisation of products.
- The company has invested intelligently in the development of wind and solar energy technologies, smart grid systems and energy efficient motors, the company is well placed to benefit from major trends in energy efficiency and renewable energy.
- They have increased the diversity of their product range and geographies over the years and are positioned well to gain market share from the growth in energy efficiency motion drive solutions, renewable power generation and electric mobility.
Risks
We believe that risks for the company include cyclicality of end-markets and tax rates.
7. Affordable and clean energy
WEG manufacture and sell renewable energy solutions used in solar and wind power generation, hydroelectric power plants and biomass helping society to shift away from fossil fuel energy production. In 2022, WEG provided 6,300 MWA in renewable energy solutions.
9. Industry Innovation and Infrastructure
WEG also manufacture and sell energy efficient electric motors, which help their customers reduce their energy requirements and greenhouse gas emissions. Their electric traction systems can be used by trucks, buses, vans, electric forklifts, trains, monorails and shipping.
Distributed Solar Photovoltaics
Contribution Type
Direct Contribution
Onshore Wind Turbines
Contribution Type
Direct Contribution
Utility-Scale Solar Photovoltaics
Contribution Type
Direct Contribution
Distributed Energy Storage
Contribution Type
Direct Contribution
Electric Cars
Contribution Type
Direct Contribution
Description
WEG contributes across the renewable energy value chain by manufacturing solutions for generation, transmission, distribution and storage for wind and solar. In 2022, they provided 6,300 MWA in renewable energy solutions.
WEG supplied its first wind turbines in 2013 and by 2019 had become one of the largest suppliers of products for solar power plants in Brazil. Around 80% of the equipment they supply in Brazil is for renewable energies. In 2022, they announced the launch of a new wind turbine platform which would be the largest machine to operate in Brazil and would start operating in 2024. The 7MW turbine provides a smoother connection to the electrical grid and is also capable of providing energy even when there is no wind.
In 2019, the company was also a participant in Volkswagen's e-Delivery manufacturing consortium for the first 100% electric light truck in Brazil, responsible for supplying the electric powertrain, as well as motors and inverters for auxiliary systems.
They also launched electric vehicle charging stations - WEMOB - designed for home and parking lot use and have also partnered with automotive OEMs in electric mobility projects, including electric buses.
Energy - Physical infrastructure
Contribution Type
Direct Contribution
Rationales
WEG manufactures and sells efficient electrical motors, which help customers both reduce their energy requirements and reduce their greenhouse gas emissions. In 2019 they became one of the largest suppliers of products for solar power plants in Brazil. They are also one of the main suppliers of wind turbines in the Brazilian market and supply full solutions for hydroelectricity.
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For illustrative purposes only. Reference to the names of example company names mentioned in this communication is merely for explaining the investment strategy and should not be construed as investment advice or investment recommendation of those companies. Companies mentioned herein may or may not form part of the holdings of Stewart Investors. Holdings are subject to change.
Certain statements, estimates, and projections in this document may be forward-looking statements. These forward-looking statements are based upon Stewart Investors’ current assumptions and beliefs, in light of currently available information, but involve known and unknown risks and uncertainties. Actual actions or results may differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements. There is no certainty that current conditions will last, and Stewart Investors undertakes no obligation to correct, revise or update information herein, whether as a result of new information, future events or otherwise.
Source: Stewart Investors investment team and company data. Securities mentioned are all investee companies* from representative Asia Pacific Sustainability Strategy, Asia Pacific & Japan Sustainability Strategy, Asia Pacific Leaders Sustainability Strategy, European Sustainability Strategy, European (ex UK) Sustainability Strategy, Global Emerging Markets Leaders Sustainability Strategy, Global Emerging Markets Sustainability Strategy, Indian Subcontinent Sustainability Strategy, Worldwide Sustainability Strategy and Worldwide Leaders Sustainability Strategy accounts as at 30 September 2023. *Assets that the strategies may hold which an active decision has not been made, and sustainability assessment does not apply, include cash, cash equivalents, short-term holdings for the purpose of efficient portfolio management and holdings received as a result of mandatory corporate actions. Holdings of such assets will not appear on Portfolio Explorer.
The Stewart Investors supports the Sustainable Development Goals (SDGs). The full list of SDGs can be found on the United Nations website.
Source for Climate Solutions and impact figures: © 2014–2023 Project Drawdown (drawdown.org). Source for Human Development Pillars: Stewart Investors investment team.
Source for climate solutions and human development analysis and mapping: Stewart Investors investment team. Contributions are defined by the team as demonstrable contributions to any solution, either direct (directly attributable to products, services or practices provided by that company), or enabling (supported or made possible by products or technologies provided by that company).
